Daily Research Report || May. 29, 2023

According to economists, the manufacturing and services sectors would be the main drivers of India's economy's development in the January-March quarter (Q4FY23), indicating stronger consumption patterns and a positive increase in private investment. In Q3FY23 (October–December), GDP growth was reported to be 4.4%, compared to 4% in Q4FY22. The actual print for Q4FY23 for the entire year FY23.

Even though India is not the richest nation in the world, it has one of the biggest revenue collections, and the income tax rate should be lowered from about 40% to 25%. The entire tax rate shouldn't be more than 25% as far as direct taxes are concerned. With surcharges and other costs, it is currently about 40. The highest income tax rate in India now is 39%. By eliminating the surcharge for high net worth persons, the Budget 2023–24 reduced India's highest rate of income tax from 42.74 percent.

India's exports to Germany from a variety of industries, including chemicals, equipment, textiles, and electronics, are expected to be impacted by the country's economic downturn. Germany, the fourth-largest economy in the world, is in recession as a result of a 0.5% loss in GDP in the fourth quarter of last year and a 0.3% decline in the first quarter of 2023. 4.4% of India's total exports in 2022 went to Germany, with the majority going to industries including organic chemicals, machinery, electronics, textiles, footwear, iron and steel products, and leather items.

India has had the strongest performance in May so far, with the Nifty rallying by 2.8%, compared to the European markets' negative returns and the S&P 500's meagre 1% return. Other emerging markets have also performed poorly. In India throughout the first three months of this year, FPIs sold continuously. However, in May, they became active purchasers. FPIs have made Rs 29,668 crore in stock market investments as of May 25. Through the primary market, they made further investments totaling Rs. 5,136 crore. The fact that FPIs have continued to invest shows their belief in the Indian economy and company profitability for FY24 and beyond.

In spite of ongoing attempts to combine with parent company Tata Capital Ltd (TCL), Tata Capital Financial Services Ltd (TCFSL) wants to raise up to Rs 7,000 crore through bonds to sustain expansion in the current fiscal year. A retail, SME, and corporate finance company, TCFSL reported a 32.03 percent year-over-year increase in assets to Rs 78,499 crore at the end of March 2023. It had a capital adequacy ratio of 17.3% and a tier-1 threshold of 13%.

Due to improved revenues, Hi-Tech Pipes Ltd. reported a 42% increase in its consolidated net profit of around Rs 16 crore in the March 2023 quarter. It earned a net profit of Rs 11.22 crore during the January to March 2021–2022 quarter. From Rs. 594.77 crore in the same period last year, its operating revenue climbed by 18% to Rs. 701.85 crore this quarter.

In order to secure a price of USD 12 for the fuel it intends to provide starting on June 15, India's largest oil and gas producer ONGC has finally set a date for the much-anticipated commencement of production from its KG basin gas development. From June 15 to February 5, 2024, Oil and Natural Gas Corporation (ONGC) would increase production from the block in the Bay of Bengal that is next to Reliance Industries' productive KG-D6 region to 1.4 million standard cubic metres per day, a fraction of the expected output.

PTC India Ltd, a supplier of power trading solutions, reported a 17.67% decline in its consolidated net profit for the March quarter, coming in at Rs 129.34 crore on Saturday. Its net profit for the January–March fiscal year 22 quarter was Rs. 157.11 crore. However, the company's overall revenue increased to Rs 3,643.02 crore from Rs 3,107.04 crore in the corresponding period last year. Expenses increased as well, rising to Rs 3,471.95 crore from Rs 2,890.57 crore the previous year.